Slide 1: June Quarter 2019 Financial Results
Lam Research Corporation June Quarter 2019 Financial Results July 31, 2019 © 2019 Lam Research Corp. | 7.31.2019 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation and the accompanying discussion contain “forward-looking statements” under U.S. securities laws. Forward-looking statements include any statements that are not statements of historical fact. Examples of forward-looking state
Slide 3: Business Review and Industry Outlook
Business Review and Industry Outlook Tim Archer President and Chief Executive Officer © 2019 Lam Research Corp. | 7.31.2019 3
Slide 4: Strong Execution in June 2019 Quarter
Strong Execution in June 2019 Quarter $2.36B 26.9% Revenue Operating Margin* June 2019 Quarter Results 45.9% $3.62 Gross Margin* Earnings per Share* *Data calculated on a non-GAAP basis. Reconciliations of U.S. GAAP results to non-GAAP results can be found at the end of this presentation © 2019 Lam
Slide 5: Industry Overview
Industry Overview 2019 WFE expected to be down in the mid to high teens percentage from 2018 Foundry spending tracking higher, with Memory spending incrementally lower Foundry strengthening with migration toward advanced nodes 2019 WFE spending view directionally unchanged © 2019 Lam Research Corp.
Slide 6: Lam Leadership in Enabling 3D Scaling
Lam Leadership in Enabling 3D Scaling Stress Reduction Heterogeneous Integration RC Delay New architecture for foundry 3D NAND layers scaling and logic DRAM 1z/1a node scaling Backside Deposition using Electroplating system for 3D Ability to deposit highly innovative single step chip stacking applic
Slide 7: Delivering Productivity Enhancements in Semi-Critical Applications
Delivering Productivity Enhancements in Semi-Critical Applications Mask Open Metal Contact Mask Open applications with Metal Contact applications single step vs. multiple step with faster etch rates and approach superior profile control Lam tools providing productivity and cost of ownership advantag
Slide 8: Customer Support Business Group
Customer Support Business Group Anticipate solid installed- base business revenue growth in 2019 Reliant® systems business achieved another quarterly revenue record © 2019 Lam Research Corp. | 7.31.2019 8
Slide 9: Compelling Long-term Opportunities for Lam
Compelling Long-term Opportunities for Lam Lam is in an excellent position to outperform in the long term Strong execution on commitments Extension of our product and services portfolio differentiation Prioritization of innovation-focused investment in 3D scaling © 2019 Lam Research Corp. | 7.31.201
Slide 10: June Quarter 2019 Financial Results and September Quarter 2019 Outlook
June Quarter 2019 Financial Results and September Quarter 2019 Outlook Doug Bettinger Executive Vice President and Chief Financial Officer © 2019 Lam Research Corp. | 7.31.2019 10
Slide 11: June Quarter Results
June Quarter Results ► Non-GAAP EPS was over the guidance range for the June Quarter Revenue Earnings per Share* $2.36 $2.44 $3.62 $3.70 Revenue ($B) EPS ($) Revenue Earnings per Share* QJun'19 QMar'19 QJun'19 QMar'19 *Data are presented on a non-GAAP basis. Reconciliations of U.S. GAAP results to n
Slide 12: June Quarter Revenue Mix
June Quarter Revenue Mix ► Combined memory segment increased to 64% of systems revenue System Revenue Segments Revenue by Region Europe 3% Logic/Other SEA 5% 13% U.S. Korea 11% 25% Foundry 23% Revenue NVM Japan Revenue 9% 46% Taiwan DRAM 14% 18% China Memory 64% 33% NVM = Non-Volatile Memory © 2019
Slide 13: June Quarter Financial Results
June Quarter Financial Results Jun’19 Mar’19 Revenue $2,361M $2,439M Non-GAAP Gross Margin* 45.9% 45.1% Non-GAAP Operating Expenses* $450M $488M Non-GAAP Operating Income* $635M $611M Non-GAAP Operating Income as a 26.9% 25.1% percentage of Revenue* Non-GAAP Other (Expense)/Income* $(6M) $21M Non-GA
Slide 14: Key Balance Sheet and Financial Metrics
Key Balance Sheet and Financial Metrics Jun’19 Mar’19 Total Consolidated Gross Cash Balance $5,686M $6,397M Account Receivables, Net $1,456M $1,522M DSO 56 Days 61 Days Inventory Turns 3.3 3.4 Deferred Revenue* $449M $441M Capital Expenditures $66M $76M Equity Compensation Expense $45M $53M Amortiza
Slide 15: September 2019 Quarter Guidance
September 2019 Quarter Guidance $2.15B $150M 24.5% 1% Revenue Non-GAAP Operating Margin 45.0% 1% $3.00 $0.20 Non-GAAP Non-GAAP Gross Margin Earnings per Share* A reconciliation of U.S. GAAP projected results to non-GAAP projected results can be found at the end of this presentation *Based on
Slide 16: Questions and Answers
Questions and Answers © 2019 Lam Research Corp. | 7.31.2019 16
Slide 17: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Three Months Ended June 30, March 31, 2019 2019 U.S. GAAP net income $ 541,825 $ 547,390 Pre-tax non-GAAP items: Amortization related to intangible assets acquire
Slide 18: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income (in thousands, except percentages) (unaudited) Three Months Ended June 30, March 31, 2019 2019 U.S. GAAP gross margin $ 1,080,
Slide 19: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Other (Expense) Income, Net to Non-GAAP Other (Expense) Income, Net (in thousands) (unaudited) Three Months Ended June 30, March 31, 2019 2019 U.S. GAAP Other (expense) income, net $ (7,667) $ 20,532 Pre-tax non-GAAP items: Amortization of note d
Slide 20: Appendix – Reconciliation
Appendix – Reconciliation Reconciliation of U.S. GAAP Income Tax Rate to Non-GAAP Income Tax Rate (in thousands) (unaudited) Three Months Ended June 30, March 31, 2019 2019 U.S. GAAP income before income taxes $ 609,418 $ 586,049 U.S. GAAP income tax benefit $ 67,593 $ 38,659 U.S. GAAP income tax ra
Slide 21: Appendix – Reconciliation to Non-GAAP Guidance
Appendix – Reconciliation Reconciliation of U.S. GAAP to Non-GAAP Guidance for the September 2019 quarter U.S. GAAP Reconciling Items Non-GAAP Revenue $2.15 Billion +/- $150 Million — $2.15 Billion +/- $150 Million Gross margin as a percentage of revenue 44.9% +/- 1% $ 2 Million 45.0% +/- 1% Operati
Slide 22: VAA
VAA Innovative Technology Trusted Productivity Fast Solutions y NX